Bitcoin: Signs of recovery emerge

• Bitcoin whales led the recovery charge with close to 1,000 transactions.
• BTC has gained around 5% in value in the last three days.

Last week witnessed a series of downward spirals in the price of Bitcoin [BTC] for many reasons. Nonetheless, as the weekend approached, a glimmer of hope emerged with a slight resurgence in value, accompanied by an upward trend in transaction volumes.

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Bitcoin whales ramp up transactions

Santiment’s crucial Bitcoin metric offered an insightful view of the cryptocurrency’s recovery journey, highlighted by a surge in activity. Despite a price decline, the whale transaction metric, encompassing transactions exceeding $1 million, experienced a significant spike on 11 June.

The chart vividly displayed a surge of nearly 1,000 whale transactions, marking the highest figure in over two months. 

Source: Santiment

As of this writing, this metric stood at 61. This spike signified a notable increase in substantial BTC transactions amid the ongoing decline. Although, the direction of these transactions remained ambiguous.

Furthermore, BTC’s transaction volume exhibited a more gradual yet discernible increase. Examining the transaction volume metric, there was a slight upward trend. At press time, the transaction volume surpassed the $3 billion mark. This escalation in transaction volume indicated that major stakeholders were actively moving assets as market polarization intensified.

Source: Santiment

Supply on exchanges slides to record low

Amidst the price decline and the spread of fear, uncertainty, and doubt (FUD), a noteworthy shift in Bitcoin’s movement was observed as holders moved their coins off exchanges. As of this writing, the percentage of Bitcoin held on exchanges stood at approximately 6.4%. This exchange level marked a significant milestone for BTC, as it had not been witnessed in over five years.

The movement of these coins away from exchanges served as a bullish indicator, suggesting that holders were confident of a future price surge.

Source: Santiment

Bitcoin between bull and bear

When examining the daily timeframe chart, Bitcoin showcased signs of recovery from its recent downtrend. As of this writing, BTC was trading at approximately $26,600, with a gain of nearly 1%. This resulted in an overall gain of approximately 5% over the past three days.

The short Moving Average (yellow line) formed the immediate price resistance at around $27,190.

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However, if the price continues to rise, BTC has the potential to surpass this resistance level and advance further.

Source: TradingView

The consecutive price increases have propelled BTC into a somewhat bullish trend. The Relative Strength Index (RSI) sat at 50 at press time, indicating a delicate balance between bearish and bullish sentiments.